In a move to attract foreign investments, the Government of India (GoI) has given the green light for public and privately held Indian companies to directly list on the exchanges at Gujarat International Fin-Tec City (GIFT) International Financial Services Center (IFSC). 

During the launch of the Corporate Debt Market Development Fund (CDMDF) in Mumbai, Finance Minister Nirmala Sitharaman announced the decision highlighting its significance. She emphasised that the move would enable access to global capital and improve valuations for Indian companies. It represents a significant step forward in positioning GIFT IFSC as a thought leader in finance, going beyond traditional boundaries.

The move comes as India seeks to enhance its competitiveness and keep pace with Chinese companies thriving on foreign bourses, particularly in the US. Until now, Indian companies faced hurdles, including taxation issues, when attempting to list on foreign exchanges, limiting their access to global capital. The only available option was through instruments like depository receipts.

The idea of allowing Indian companies to list in foreign jurisdictions directly was first proposed back in May 2020. Although GIFT IFSC is not precisely a foreign destination, it functions as a special economic zone (SEZ) and offers incentives and benefits akin to those available in foreign jurisdictions.

Indian companies are now allowed to list directly in the special zone, GIFT IFSC, regardless of whether they are listed elsewhere on any of the exchanges in the country. Furthermore, there are plans to include a few foreign jurisdictions in the permissible list in the future.